Case Study Russell Hobbs Marketing Essay

Case Study Russell Hobbs Marketing Essay Now a day in this business word everyone wants to be a global company. To expend the business in a new area this module (International marketing strategy) help us to make a clear view how to enter a new market and what criteria have to follow to be successful in international market. By following these organizations can achieve the position within a short possible time. It may be valuable for the organization and also easier for them to understand the facts what they are doing, what they need to do. So they need to develop a strategy what tell them how they can enter in a new market and what the need to change or develop to be successful in foreign market. Because of the competitive business world and economic developments organizations always try to capture the market. And they always look for a new place to do business that increase their business profit. In here I am going to examine the new market environment, market mix strategy and strategy for entering in a new market for Russell Hobbs. This module will help a lot to examine the new market environment, mix strategy and how to enter in a new market. About Russell Hobbs: Russell Hobbs ltd is a UK based private company established in 1952 by Bill Russell and Peter Hobbs. In 1952, they designed the worlds first automatic coffee percolator, the CP1.(  About us  Official Russell Hobbs website) Russell Hobbs has been tantamount with quality, style and innovation for the kitchen and home for over fifty years. The brand led the way by introducing products which offer real consumer reimbursement and technological advancements to make life in the home easier and more enjoyable.   Throughout the decades, in kettles and toasters manufacturing they took the No 1 place, and today they admitted themselves as a leading brand in this area. With this superior track record and legacy, they have since become a leading brand in  irons, food preparation and now floor care. And they extend their business in other markets, such as heating, cookware and bake ware. (http://www.russellhobbs.co.uk/about/#1) Today Russell Hobbs boasts an extraordinary product portfolio and is continuing to develop into new categories. From kettles  and toasters to cooking, cleaning and garment care, each and every product is intended with the consumer in mind to offer the decisive in performance, practicality, ease of use and style.( http://www.russellhobbs.co.uk/about/#1) The name of Russell Hobbs recognised as a leading small kitchen appliance brand in the UK by nine out of ten consumers and has won many awards and product accreditations by leading institutes and organisations. From day one the company was always in profit. It because of the understanding capability of customer needs and demand. And also the new product innovation through introducing new technology their products are always successful in the market. From last 50 years they are the leading kettle maker in Great Britain. And from the foundation of their business they always try to make product which is easy to use and more appealing to their customers. Selection of international market: Selection of foreign market is one of the basic and important factors to launch a product for any company, so the choice of mode of entering in a foreign market is another major issue by which now a days international businesses must tussle. To select an international market company have to understand the business environment of that country it will help them to be successful in foreign market. As per my interest I am going to choose Bangladesh as a foreign market and UK based company Russell Hobbs ltd. is the host country. I am going to choose Kettle one of the best product of Russell Hobbs ltd. So, to do business in Bangladesh its market environment is more feasible. To justify this comment, I am going to use an analytical process that called PESTLE analysis. It will give us a clear idea that the environment of Bangladesh is feasible or not to do business for Russell Hobbs ltd. PESTLE analysis: PESTLE ECONOMICAL SOCIOLOAGICAL TECHNOLOGICAL LEGAL POLITICAL ENVIRONMENTAL A PESTLE analysis is a useful tool for understanding the big picture of the environment in which an organisation is operating. Specifically for understanding risks associated with market (the need for a product or service) growth or decline PESTLE analysis is useful tool, and as such the position, potential and direction for an individual business or organisation.   Political: Bangladesh is a  unitary state  and  governmental democracy. (Constitution of Bangladesh. Parliament.gov.bd. Retrieved 2010-11-28.) In here direct elections took place every five years for the  unicameral  parliament known as  Jatiya Sangsad. Aged 18 or over, can vote to choose a democracies government. The President is the head of state but mainly a ceremonial post elected by the parliament. There are two  major parties  in Bangladesh. They are the  Bangladesh Awami League  and the  Bangladesh Nationalist Party  (BNP). Student politics is particularly strong in Bangladesh, a bequest from the liberation movement period. Almost all parties have exceedingly active student wings, and student leaders have been elected to the Parliament. In the last few years has been consistently good. Bangladesh has most astutely and foresightedly chosen to set up itself as a secular democracy.( BY- Ishtiaq Ahmed, http://www.defence.pk/forums/bangladesh-defence/71487-view-political-economy-bangladesh-ishtiaq-ahmed.html) Economical: Since her independence in 1971, Bangladesh has made significant strides in her economic sector. Although the economy has improved vastly in the 1990s, in the area of foreign trade in South Asian region Bangladesh still suffers a lot. Bangladesh has made some development improving the climate for foreign investors and liberalizing the capital markets; for example, it has negotiated with foreign firms for oil and gas exploration, better countrywide supply of cooking gas, and the construction of natural gas pipelines and power stations. Progress on other economic reforms has been halting because of opposition from the system of government, public sector unions, and other vested interest groups. Bangladesh has seen a remarkable increase in  foreign direct investment. A number of  multinational corporations  and local big business houses such as  Beximco,  Square,  Akij Group,  Ispahani,  Navana Group,  Transcom Group,  Habib Group,  KDS Group,  Dragon Group  and multinationals such as  Unocal Corporation  and  Chevron, have already made a major investment, with the natural gas sector being a main concern. Fiscal Year Total Export Total Import Foreign Remittance Earnings 2007-2008 $14.11b $25.205b $8.9b 2008-2009 $15.56b $22.00b+ $9.68b 2009-2010(Set Target) $17.6b N/A $10.87b Bangladeshs textile industry, which includes knitwear and ready-made garments by the side of with specialized textile products, this area is considered as the nations number one export earner, accounting for 80% of Bangladeshs exports of $15.56 billion in 2009.(Sandeep Mahajan, Bangladesh: Strategy for Sustained Growth, Poverty Reduction and Economic Management Network, World Bank (July 26, 2007). Web.worldbank.org. Retrieved 2010-07-03)  Bangladesh considered as 3rd in world textile exports behind Turkey, another low volume exporter, and China which exported $120.1 billion worth of textiles in 2009. The industry employs almost 3.5 million workers in this country. Till date current exports have doubled since 2004. The economy of Bangladesh is constituted by that of a developing country. ( Population Division dourboyz.com. 2010. Retrieved, 03-12-03-2010.) Its per in 2008 was est. US$1,500 (adjusted by purchasing power parity). Bangladesh ranked as the 48th largest economy in the world in 2009, (According to the International Monetary Fund) with a gross domestic product of US$256 billion. Over the past few years the economy has grown at the rate of 6.7% p.a. Sociological: Bangladesh is the most densely populated no island nation in the world. With approximately 125 million inhabitants living in an area of 55,813 square miles, there are about 2,240 persons per square mile. The majority of the population (98 percent) is Bengali, with 2 percent belonging to tribal or other non-Bengali groups. Approximately 83 percent of the population is Muslim, 16 percent is Hindu, and 1 percent is Buddhist, Christian, or other. Annual population growth rate is at about 2 percent. (http://www.everyculture.com/A-Bo/Bangladesh.html) Bangladesh has a number of excellent universities in its largest urban areas that offer both undergraduate through post-graduate degrees. The most prominent universities, most of which are state supported, include: Dhaka University, Rajshahi University, Chittagong University, Jahngirnagar University, Bangladesh University of Engineering and Technology, and Bangladesh Agricultural University. Now days in Bangladesh there are a number of good private universities that provides world class education as well. Technology: The need for faster technological development is gradually more felt in Bangladesh. Development plans of Bangladesh have emphasized science and technological research to develop technologies through espousal of imported technology as well as development of aboriginal technologies. As the country is heavily dependent on imported technologies, proper planning is required for its effective transfer through acquisition, absorption and adoption.   Government has been formulated and adopted new science and technology policy. It has laid down the directions for S and T activities and research, institutional and manpower development, dissemination and documentation facilities.   Legal: LEGAL SYSTEM III.C.1. Common Law System The legal system of Bangladesh is based on a common law system. On the other hand, unlike other common law jurisdictions, Bangladeshs Supreme Court has the power to not only construe laws made by the Parliament but to also declare them null and void and enforce fundamental rights of the citizens. Although founded on the English common law system, the laws of Bangladesh take a statutory form which are enacted by the legislature and interpreted by the higher courts. The govt. regulations or the legal condition of Bangladesh is also not a big obstacle at starting new business or to launch new product. But in terms of introducing new consumer product, a company must obtain the approval of BSTI (Bangladesh Standard Testing Institute). So to launch a product the company must obtain BSTI approval. FOREIGN INVESTMENT INCENTIVES IV.A. General Incentives for Foreign Investment The government has been keen in promoting foreign investment and continues in its efforts to attract such investment as a means of alleviating the economy. In addition, the government has liberalised the industrial and investment policies in recent years by reducing interfering control over private investment. Investment Incentives: Tax Exemptions: Generally 5 to 7 years. However, for power generation exemption is allowed for 15 years. Duty: No import duty for export oriented industry. For other industry it is at 5% ad valorem. Tax Law: Double taxation can be avoided in case of foreign investors on the basis of bilateral agreements. Exemption of income tax up to 3 years for the expatriate employees in industries specified in the relevant schedule of Income Tax ordinance. Remittance: Facilities for full repatriation of invested capital, profit and dividend. Exit: An investor can wind up an investment either through a decision of the AGM or EGM. Once a foreign investor completes the formalities to exit the country, he or she can repatriate the sales proceeds after securing proper authorization from the central bank. Ownership: Foreign investors can set up ventures which are either wholly owned or in collaboration with a local partner. (www.lexmundi.com/images/lexmundi/PDF/guide_bangla.pdf) Environment: Environment of Bangladesh is more feasible. Though, Bangladesh is a central point of reference for the inequality of climate change. Its per capita energy utilization is the equal of about 1 litre of oil per week, causative a small fraction of 1% of global greenhouse gas emissions, yet the country is listed in various risk assessments as  one of the most susceptible in the world to the effects of climate change. Rising sea levels intimidate inundation and salty interference in the southern coastal area, the risk accentuated by prediction of larger cyclone intensity. In a climate pincer movement from the north, melting Himalayan glaciers may disrupt the flows of the three great rivers, first with excess flooding and ultimately with diminished volume. Unreliable monsoon patterns and longer periods of deficiency in the north complete the roll call of climate predictions for Bangladesh. (http://uk.oneworld.net/guides/bangladesh/climate-change?gclid=CIaE58-6xqYCFQ8f4QodOTBuIA) Marketing Mix Marketing Mix  is the set of marketing tools that the firm uses to follow its marketing objectives. Marketing mix has a classification for these marketing tools. These marketing are classified and called as the Four Ps: Product Price Place Promotion The most fundamental marketing tool is product which includes product design, quality, features, branding, and packaging. An essential marketing tool is price which determines the amount of money that customers pay for the product. It also includes discounts, allowances, credit terms and payment period. Place is another important marketing mix tool. And it includes a range of activities that the company undertakes to make the product easy to get to and available to the customer. Some factors that choose the place are transport facilities, channels of distribution, coverage area, etc. Promotion is the last marketing mix tool which includes all the activities that the company undertakes to converse and promote their product to target market. Promotion includes sales promotion, advertising, sales force, public relations, direct marketing, etc. (http://www.scribd.com/doc/8719148/Pepsi-Marketing-Mix) Product In marketing, a product is everything that can be presented to a market that might assure a want or need of customers. There is of two types of product, Tangible (physical) and Intangible (non-physical). Since services have been at the front position of all modern marketing strategies, some intangibility has become important part of marketing offers. All products offered in a market can be placed between Tangible (Pure Product) and Intangible (Pure Service) range. Russell Hobbs product: Russell Hobbs introduces a lot of quality products to their customer. And because of the quality and new technology uses on their product these are most successful being the time those introduced. It is a multinational company and it is not limited to one product. Through the years they have invented and introduced many products than their main Kettle product. They are offering a range of household products like Kettles, Toasters, Irons, Coffee maker, Food preparation, Cooking Baking, Floor care, Cookware etc. Price In economics and business, the price is the assigned numerical pecuniary value of a good, service or asset. To develop a marketing plan price is one of the essential variables in the marketing mix model. Pricing is a big part of the marketing mix. Choosing the right price and the right pricing strategy is decisive to the marketing process. The price of the product is not always fixed. On the other hand the price of the product depends on lots of other factors. Some times the price of the product has got nothing to do with the real product itself. The price may proceed as a way to catch the attention of target customers. Russell Hobbs price: It was a company that ruling the markets before others entered. Previously the price of its product was cost based. It was decided on the cost which was exhausted on making the product plus the profit and other expenses. But after the appearance of other companies it started with a pricing strategy based on the basis of competition. Nowadays additional expenses are spent on advertising products of the company relatively than on manufacturing. Place Place is a term that has a diversity of meanings in a lexicon sense, but which is principally used in a geographic sense as a noun to denote location, though in a sense of a location identified with that which is located there. In marketing, place refers to one of the 4 Ps, defined as the marketplace. It can mean a geographic location, an industry, a group of people (a segment) to whom a company wants to sell its products or services, like a young professional women (for selling cosmetics) or middle-aged family men (for selling family cars). Promotion Promotion is one of the four aspects of marketing. Promotion comprises has four subcategories: Advertising Personal selling Sales promotion Publicity and public relations The arrangement of these four variables creates a promotional mix or promotional plan. A promotional mix specifies how much awareness to pay to each of the four subcategories, and how much money to budget for each. A promotional plan can have a large range of objectives, including- sales increases, new product reception, creation of brand equity, positioning, competitive retaliations, or creation of a corporate image. Foreign market entry strategy for Russell Hobbs: To enter any foreign market there are some strategy that should be follow to be successful. After doing the market analysing by using pestle analysis and doing marketing mix strategy I have come to know the market and what will need to capture a new market. Now I am trying to evaluate a market entry strategy for Russell Hobbs to enter Bangladesh Market. My approach to develop a market-entry strategy follows a proven and structured process, based on extensive industry experience and in-depth understanding of all aspects that feed into a commercial launch. To enter a new market they have to analysis the market first. And also have some approach like: Decrease the financial ambiguity that derives from lack of comprehensive market analysis and a structured strategic plan Make a possible business plan collaboration and financial planning Preliminary business case assumptions need to be revisited to superior communication with market conditions and chosen market position Create launch competence by delivering a structure for consequent planning of strategic launch activities, coordinating and prioritising tasks for launch team Make a contingency plan for risk management and market perception control Launch organisations face immense pressures on market entry, created by internal and external prospect. Some of these pressures can be relies by developing a clear and planned market-entry strategy and efficient functional plans. Market entry strategy Vision and Mission Objective Overall strategy Positioning Brand Target segment Strategic decisions Pricing Brand and communication Sales and distribution Products and services Customer service Launch phasing Tactical launch plan Contingency plan Products services Pricing Brand and communication Sales distribution channels Customer service Internal and external factors Conclusion: So from the above finding I am came on conclusion that for making entry in any international market we should follow the rules and enter in a market with perfect strategy, and my focused on launching my product, and I am focused on market mixed strategy and from the depth of the research which I do for my launching of the product so I find that Bangladesh is the best place for launching my product, because it is the place which fulfil all the requirements which I am looking for, This involved, marketing plan marketing strategy and a sound marketing mix decision. Having completed this, the report then concluded of what best entry strategy Russell Hobbs can undertake to successfully launch business in Bangladesh.